Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

plan participants appear to suffer from inertia in their investment decisions.

They tend to rebalance their portfolios very infrequently, and many simply let their contributions go into the investment default option in the plan, regardless of whether this investment option is appropriate for them or not.

Balanced Funds: automatically rebalance their holdings towards a target asset mix that remains constant over time

Life Cycle Funds rebalance automatically towards a target asset mix, that becomes increasingly conservative over time until it reaches a certain target date, at which point the target asset mix remains constant.